Bajaj Finserv's insurance arm receives GST's knock; authority sends demand notice of Rs 1010 cr
Bajaj Finserv's insurance arm, Bajaj Allianz General Insurance Company Limited (BAGIC) on September 29 received a show cause cum demand notice from the Directorate General of Goods and Services Tax (GST) Intelligence alleging a tax demand of Rs 1010.05 crore, the financial services company informed the exchanges on Tuesday.
The notice was sent by the authority's Pune office referring to the failure to pay GST between July 2017 and March 2022 notably in two areas.
First being the failure to pay tax on the co-insurance premium accepted as a follower in coinsurance transactions. Secondly, the failure to pay the GST on the reinsurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies.
Nonetheless, Bajaj Finserv, in its filing, has assured of an appropriate response to the same.
«The Show Cause Cum Demand Notice refers to the two matters that are industry wide issues and based on the advice of its tax advisors, BAGIC will be filing appropriate response to the said Show Cause Cum Demand Notice within the prescribed timelines,» the company said in a regulatory filing.
